Should We Buy Gold Now in Pakistan?

February 11, 2023 0 Comments

Gold is a popular investment in Pakistan. The country has a long history of gold trading and its citizens have a strong preference for the metal. Gold prices are volatile, but have been on the rise in recent years.

Despite this, there is no guarantee that gold prices will continue to rise, or that they will remain stable. Before investing in gold, it is important to do your own research and speak with a financial advisor to make sure it is the right decision for you.

What is the Current Trend of Gold?

Gold has been on a tear in recent months, as investors seek safe havens amid global economic uncertainty. The metal hit a record high of $2,000 an ounce in early August, and is currently trading around $1,900. That’s up more than 20% from its low point in March, when the coronavirus pandemic sent shockwaves through financial markets.

Investors have flocked to gold as a hedge against inflation and potential currency debasement. With central banks around the world pumping unprecedented levels of stimulus into their economies, there are fears that all of that money printing could eventually lead to higher prices. Gold is seen as a way to protect against those risks.

Demand for gold has also been boosted by strong demand from China and other Asian nations. In China, gold is seen as a store of wealth and a key part of many traditional celebrations such as weddings.

Pakistan Gold Reserves Ranking

Pakistan has the world’s sixth-largest gold reserves, with 188.8 tonnes of the precious metal worth $9.19 billion as of end-September 2020, according to data from the World Gold Council (WGC). The South Asian nation’s central bank increased its gold holdings by 6.3% or 11.4 tonnes during the July-September quarter. In terms of per capita gold holdings, Pakistan ranks 20th globally with each person in the country having 0.47 grams of gold on an average as compared to India’s 0.32 grams and China’s 0.24 grams per capita at end-2019, WGC data shows.

Globally, the US has the largest per capita gold holding followed by Germany, Italy and France while India is placed at the 12th spot.

Gold Reserves in State Bank of Pakistan It is estimated that the State Bank of Pakistan (SBP) has gold reserves of more than 500 metric tons. The majority of these reserves are in the form of bullion, with a small percentage in the form of coins. The SBP’s gold holdings are believed to be worth approximately $19 billion as of September 2020.

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